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Venezuela: Energy Overview
Venezuela
has
the
largest
conventional
oil
reserves and the second-largest natural gas reserves
in the Western Hemisphere. It also has vast deposits
of extra-heavy crude oil and bitumen.
Venezuela consistently ranks in the top four
sources of oil imports to the United States, meeting
around 15% of US requirements. As the world's fifth
Energy production dominates
the Venezuelan economy
largest net exporter, oil accounts for about half of
total government revenues.
Venezuela has been producing oil for nearly a
OIL
century
and
was
an Opec
Under President Hugo Chavez,
there
has
been
a shiftfounder-member.
in oil policy and Venezuela
now strictly adheres to its Opec production quotas. According to official Venezuelan
figures, state-run energy firm Petroleos de Venezuela SA (PDVSA) currently produces
3.3 million barrels a day.
The country appears to have recovered from the oil strike of 2002-2003, when
anti-government protests shut down production right across the country.
In December 2002, nearly half of PDVSA's staff downed tools and thousands of
workers - including many skilled technicians - were subsequently sacked.
The dramatic effects on the nation's economy were relatively short-lived thanks to
soaring world oil prices. The same high prices are expected to continue driving GDP
growth in 2006.
NATURAL GAS
Although Venezuela has the ninth largest gas reserves in the world, inadequate
transportation and distribution infrastructure has prevented it from making the most
of its resources. Moreover, the petroleum industry consumes more than 70% of
domestic production.
In 2003, Venezuela signed an agreement with neighbouring Colombia to
construct a 130-mile pipeline, which will carry Colombian gas from Punta Ballenas to
the Maracaibo oil fields in Venezuela. It is also planning a huge project to build a gas
pipeline to Patagonia, to supply demand for gas in other countries.
ELECTRICITY
Hydropower provides the bulk of Venezuela's electricity supply - accounting for
66% in 2003, according to the International Energy Agency.
Production is centred on the Caroni River in Guayana State, site of the Guri dam.
Guri is the second-largest hydroelectric plant in the world after Itaipu in neighbouring
Brazil.
ENVIRONMENT
Prolonged oil production has taken its toll on the country's environment.
There is significant oil pollution along the Caribbean coast and Venezuela is the
region's top emitter (producer) of carbon dioxide.
Another side-effect of the oil business can be seen at Lake Maracaibo in
north-western Venezuela. Several oil slicks occurred on Lake Maracaibo in
northwestern Venezuela between December 2002 and January 2003, and were
observed by various satellite instruments.
Also, the eastern shore of South
America's largest lake is subsiding at a rate of around 8 cm per year.
Subsidence (sinking to a lower level) commonly occurs when hydrocarbons
(stuff found in oil) are extracted in large quantities, as they have been for
decades in mature fields of the Maracaibo basin.
This poses a threat not only to the oil sector and the economy, but also to
the people living in towns and cities around the lake who have already been
affected by severe flooding.
BBC Monitoring selects and translates news from radio, television, press, news agencies
and the internet from 150 countries in more than 70 languages. It is based in Caversham,
UK, and has several bureaus abroad.
http://news.bbc.co.uk/1/hi/world/americas/4692534.stm
Pollution and Deforestation in Venezuela
Pollution and Water pollution is a major environmental concern in Venezuela. Rivers, lakes,
and underground aquifers (like super large springs) are becoming increasingly polluted due to
oil development, untreated sewage wastes, and fertilizer run-off. Lake Maracaibo,
Venezuela's largest lake, is suffering from increased pollution, and the resort island of
Margarita suffers from frequent water shortages as the island's population exceeds (grows
beyond) its infrastructure's ability to provide water and treat waste. According to news reports
in August 1999, the state oil company, PdVSA, faces about $1.5 billion in environmental
liabilities (expenses). Cleaning up 15,000 oil pits, which collect contaminated sludge from oil
wells alone could cost $1 billion. Periodic spills have damaged local flora and fauna (Plants
and animals), with negative implications for biodiversity (mixture of plant and animal life)
and for the local economy. Environmental concerns traditionally have not been a major focus
of PdVSA, but the company has now adopted an environmental policy and pledges to rank
environmental protection as one of its top goals. It now is in the process of cleaning up the
most environmentally dangerous oil pits, many of which are seeping into Venezuela's water
supplies.
Deforestation (cutting down forests) is a problem throughout South America, and Venezuela is
no exception. About half of the country is under forest cover. The United Nations Food and
Agriculture Organization estimated that Venezuela lost forest cover at a rate twice as high as
the average rate for tropical South America between 1990 and 1995.
http://corrosion-doctors.org/AtmCorros/mapVenezuela.htm